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Where Do Millionaires Spend Their Money?

1/14/2015

Spectrem’s just-released fourth quarter study, “Asset Allocation, Portfolios and Primary Providers,” examines in part household expenditures of Affluent households over the last year. Millionaires with a net worth between $1 million and $4.9 million were more likely to make charitable contributions or support the arts than they were to pay for club memberships, gambling, or on such trappings as boats or collectibles.

Over the past 12 months, nine-in-ten Millionaires said they had spent nothing on boats. Other things on which a majority of Millionaires have allocated none of their resources include:

Gambling (72 percent)

Collectibles (70 percent)

Political contributions (69 percent)

Club memberships (54 percent)

Millionaires are more likely to spend on vacations or leisure travel. Nearly four-in-ten spent up to $5,000 on trips in the past year, while one-third spent between $5,000 and $9,999. Fifteen percent spent between $10,000 and $14,999 and 7 percent spent between $15,000 and $24,999.

The arts, too, benefited. Three-fourths of Millionaire respondents spent up to $5,000 on cultural activities, such as the symphony, Six-in-ten spent similarly on entertainment and sporting events.

Millionaires did not go overboard with clothes or jewelry last year. The highest percentages spent up to $5,000 on clothing (89 percent) and jewelry (58 percent). Roughly seven-in-ten spent that amount on charitable contributions.

Home improvement was something of a priority last year, with half spending up to $5,000 on upgrades. Nineteen percent spent $5,000 to $9,999 and 10 percent spent between $10,000 and $14,999. Only 3 percent spent at least $50,000 on home improvements.